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"They are limited in what they can do to improve capital spending, and that's the weakest sector," he said.
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Alliance raised its WorldCom holdings significantly in the first quarter because the company's financial profile seemed to be improving, with capital spending falling sharply, he said.
And however much things improve, says Mr Winther, capital spending will never return to the levels seen during the boom.
Added to improving exports and capital spending, the numbers also signal that the economy could pick up steam this quarter.
Despite the improving situation for capital spending, the overall science budget, which covers grants, journal subscriptions, and overhead costs, has remained nearly flat since 2010.
On Thursday, the company said it would cut 12,800 jobs by the end of 2001 and increase its capital spending to improve service and invest in its core business.
STEVE FORBES: Capital spending will improve.
Business capital spending will improve.
The Bank of Japan became more optimistic about the economy, the world's second-largest, citing improved business confidence and higher capital spending.
The strong quarterly performance came after two quarters of contraction, a turnaround officials attributed to improved domestic demand and private capital spending.
"As profits continue to improve, we expect business to increase its capital spending," Mr. Floyd said.
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CEO of Professional Science Editing for Scientists @ prosciediting.com